Carry-over-trades-#COT and #rollover of hedged positions using derivatives or bank loans provided to borrowers are two terms often regularly confused with one another in practical life.
Students of Financial Engineering, and Treasury, in particular, should know the difference.
Students of Financial Engineering, and Treasury, in particular, should know the difference.
Actually, once you come out of the university/ business school, you come to realize that the market professionals, and financial dealers or traders, have their own technical parlances and lexicon.
What you learn in the book is not how it is done in the real world!
What you learn in the book is not how it is done in the real world!
When I used to teach students or train experienced bankers and fund managers, I saw that they both have the same kind of mental blockades.
Both, struggle to relate theory to reality?
I am not an educational psychologist, perhaps, they can better answer this question.
Both, struggle to relate theory to reality?
I am not an educational psychologist, perhaps, they can better answer this question.
For e.g. in treasury fixed income markets, the dealers habitually, use the phrase "SHORT" during auction participation, even in markets where t-bond or other government securities derivatives don't exist.
So when you explain this to students, they get massively confused!
So when you explain this to students, they get massively confused!
Similarly, Private Trades during off-market hours, Pre-IPO Trading, and Private Placement are also three financial market activities that are often misunderstood by fertile minds undergoing preliminary learning at business schools.
Professors of Finance must teach with examples.
Professors of Finance must teach with examples.
Not many of my students knew the difference between book building, and book running.
These are two commonly used phrases in Investment Banking, which are hardly taught in a standard book of Finance or Investments.
These are two commonly used phrases in Investment Banking, which are hardly taught in a standard book of Finance or Investments.
I asked my MBA students, attending a level 400 elective, to tell me if they knew, what are the practical contrasts among a market maker, a treasury dealer, a pit trader, a fund manager, a broker, an asset manager, a jobber, a frontrunner, lead arranger, etc.
They couldn't answer!
They couldn't answer!
I guess MBA should be structured on completely different pedagogical lines, using a markedly distinct academic philosophy.
MBA in Finance is not akin to an MSc in Finance.
The Professor aka Instructor in the classroom must use real-world jargon to teach impressionable minds.
MBA in Finance is not akin to an MSc in Finance.
The Professor aka Instructor in the classroom must use real-world jargon to teach impressionable minds.
investopedia.com/articles/inves…
Many MBA Finance students cannot distinguish between HFT and ALGO Trading Methods
Many MBA Finance students cannot distinguish between HFT and ALGO Trading Methods
I hope MBA Finance students and practitioners in the subject can interchangeable communicate with each other.
What is relevant in theory should be practised, and the latter should be used to update the former.
This GAP needs to be addressed by developing a common language.
What is relevant in theory should be practised, and the latter should be used to update the former.
This GAP needs to be addressed by developing a common language.
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